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1 4 . In an economy that follows the CAPM, ABC Inc. stock has an annual dividend of $ 6 per share and a CAPM

14. In an economy that follows the CAPM, ABC Inc. stock has an annual dividend of $6 per share and a CAPM beta of 0.8. The risk free rate is 7% and investors expect the market portfolio to return 15% over the next year. If the stock is currently trading at $650, what is the expected price of the stock one year form today?

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